Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance Direct Lending topic
No spam. Unsubscribe anytime.
OHCS outlines plan to restart direct lending with July 2026 ORCA launch
Summary
Staff described plans to restart OHCS direct lending as a permanent first‑lien loan product, outlined loan terms and underwriting expectations (example: 30‑year tax‑exempt loan estimate ~5.45%), proposed a credit committee for oversight, and scheduled ORCA launch for July 2026.
Kelso Brouzounis, financial strategy lead, presented the agency’s plan to restart its direct lending program as part of ORCA implementation. Brouzounis said the program will offer permanent first‑lien loans (including E&D products and HUD risk‑sharing credit‑enhanced loans) and that draft term sheets and underwriting standards will be published in May for partner review.
As a reference point, Brouzounis gave a late‑March estimate that a 30‑year tax‑exempt loan could be offered at about 5.45%. He described affordability and AMI constraints tied to tax‑exempt bond rules (e.g., 40% of units at 60% AMI or 20% at 50% AMI) and said affordability terms will typically be 15 years or the life of the loan. "As of late March, OHCS estimates that we could provide a 30 year tax exempt loan at 5.45%," he said.
Staff proposed establishing a credit committee, appointed by Director Bell, to review direct lending recommendations and provide financial scrutiny before items come to the council. Brouzounis also noted the program aims to address market gaps—smaller projects, newer borrowers or certain geographies—and that ORCA will host application materials in a term‑sheet format in May with a target ORCA launch for July 2026.
Council members welcomed the presentation and asked for additional briefings on governance and internal capacity before a formal launch; Director Bell and staff agreed to follow up with an orientation on program structure and credit committee charge.
